Monster (MWW) Shares Rally as CEO Signals Possible M&A, May Fetch $11-$12+/Share
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Price: $3.41 --0%
Rating Summary:
4 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Rating Summary:
4 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
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Shares of Monster Worldwide (NYSE: MWW) have pulled back from near-intraday highs Thursday afternoon following a nice run on comments from its CEO earlier.
Speaking at an R.W. Baird & Co. conference in Boston, Monster CEO Salvatore Iannuzzi said he is considering "strategic alternatives" for the company. Specifically, Iannuzzi said, "The board and the management is also focused on pursuing all other strategic alternatives to increasing shareholder value..."
Iannuzzi didn't cite any specific moves, but an overall effort to get the stock back in gear. He commented, "It’s not a one side equation. We need to move the business. We need to stay focused on the business and keep building our business and at the same time ensure that we extract the maximum amount of shareholder value in anyway we can."
Since March 1st, 2011, when shares were at $16.84, Monster's stock has dropped 59 percent to Wednesday's close at $6.94. For the most part, Monster shares have been flat save for last year's summer turmoil caused by issues in Greece and fears of contagion throughout Europe.
Earlier in February, one Citi analyst said Monster appears to be faring worse than LinkedIn (NYSE LNKD) and CareerBuilder. The analyst cited a challenging competitive environment.
Alternatives may include a takeover of Monster, according to a SunTrust Robinson Humphrey analyst. Marketing expenses, which accounted for about 21 percent of overall revs in 2011, might be the first to go, said the analyst, and the buyer might be able to catch the current uptrend in hiring. The analyst estimates about $11 to $12 per share for Monster, though that number might increase in a leveraged buyout.
Monster shares are up 15 percent to just under $8 per share in the afternoon session; the stock was up as much as 25 percent earlier.
Speaking at an R.W. Baird & Co. conference in Boston, Monster CEO Salvatore Iannuzzi said he is considering "strategic alternatives" for the company. Specifically, Iannuzzi said, "The board and the management is also focused on pursuing all other strategic alternatives to increasing shareholder value..."
Iannuzzi didn't cite any specific moves, but an overall effort to get the stock back in gear. He commented, "It’s not a one side equation. We need to move the business. We need to stay focused on the business and keep building our business and at the same time ensure that we extract the maximum amount of shareholder value in anyway we can."
Since March 1st, 2011, when shares were at $16.84, Monster's stock has dropped 59 percent to Wednesday's close at $6.94. For the most part, Monster shares have been flat save for last year's summer turmoil caused by issues in Greece and fears of contagion throughout Europe.
Earlier in February, one Citi analyst said Monster appears to be faring worse than LinkedIn (NYSE LNKD) and CareerBuilder. The analyst cited a challenging competitive environment.
Alternatives may include a takeover of Monster, according to a SunTrust Robinson Humphrey analyst. Marketing expenses, which accounted for about 21 percent of overall revs in 2011, might be the first to go, said the analyst, and the buyer might be able to catch the current uptrend in hiring. The analyst estimates about $11 to $12 per share for Monster, though that number might increase in a leveraged buyout.
Monster shares are up 15 percent to just under $8 per share in the afternoon session; the stock was up as much as 25 percent earlier.
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